NKE · 10-Q · 2026Q3 · Full report

Operating Expense Trends

NIKE, Inc. · 2026-10-02 · Importance 42 · Surprise 14 · From source text

Total selling and administrative expense decreased 3% to $3.910 billion, but increased to 34.9% of revenue from 34.3% because revenue declined faster than expenses. Demand creation expense increased 5% to $1.252 billion, primarily because of higher brand marketing investment in key sports events. Operating overhead expense decreased 6% to $2.658 billion, primarily due to lower wage-related expense and lower other administrative costs. Global Brand Divisions increased demand creation expense 14% while reducing operating overhead expense 14%, producing a 7% reduction in its EBIT loss to $1.110 billion.

Key facts

• Demand creation expense was $1,252 million for the three months ended August 31, 2026 compared to $1,188 million for the three months ended August 31, 2025, an increase of 5% primarily due to higher brand marketing expense. source
• Operating overhead expense was $2,658 million for the three months ended August 31, 2026 compared to $2,828 million for the three months ended August 31, 2025, a decrease of 6% primarily due to lower wage-related expense and lower other administrative costs. source
• Total selling and administrative expense was $3,910 million for the three months ended August 31, 2026 compared to $4,016 million for the three months ended August 31, 2025, a decrease of 3% and represented 34.9% of revenues in the current period. source
• Demand creation expense for Global Brand Divisions increased 14% primarily due to higher brand marketing expense. source
• Operating overhead expense for Global Brand Divisions decreased 14% primarily due to lower wage-related expense. source
• Global Brand Divisions' loss before interest and taxes decreased 7% primarily due to lower Operating overhead expense, partially offset by higher Demand creation expense. source

Impact estimates